Gold was steady in the Asian trading hours on Friday while investors wait on the sidelines as Greece and its international creditors remain in deadlock over its debt crisis.
The spot gold price was last little changed at $1,174.2/1,175 per ounce. Trade has ranged from 1,173.8 to $1,173.6 so far.
Despite intensive talks, there remains no resolution to the Greek debt crisis. Eurozone finance ministers met yesterday in another attempt to find a solution, with deadlock between Athens and its creditors, but failed to thrash out a deal – another meeting is scheduled for today.
“Despite the possible gold-bullish ramifications of a Greek default, gold prices did little, indicating investors are not yet focused on gold as a safe haven as regards the Greek crisis,” James Steel, HSBC analyst, said.
Greece faces sovereign debt default if it fails to make a 1.6-billion-euro IMF debt repayment by Tuesday June 30, which could force the country out of the EU single currency.
Elsewhere, despite an improving monsoon, the Indian market is still sluggish regarding gold demand, with discounts to London reported on the key Mumbai market, Steel noted.
“Premiums in Shanghai have risen, however, indicating better Chinese demand. We suspect that a further gold price drop may stimulate India demand, which shown itself to be historically price sensitive,” he added.
In US data overnight, weekly unemployment claims were in-line with forecasts at 271,000, the 18 straight month of unemployment under 300,000. Core PCE price index month-over-month in May also met expectations of a 0.1 percent increase, while personal spending month-over-month in May was up 0.9 percent, above forecasts of 0.7 percent.
Additionally, May personal income month-over-month was slightly below estimates at 0.5 percent, with consensus pegging a rise of 0.6 percent.
Today’s data includes German import prices, eurozone’s M3 money supply and private loans and from the US, UoM consumer sentiment and revised UoM inflation expectations.
As for the other precious metals, silver was little changed at $15.83/15.88. Platinum at $1,077/1,082 fell $5, while palladium at $674/680 was down $3.
On the Shanghai Futures Exchange (SHFE) gold for December delivery was down one yuan at 237 yuan per gram.
(Additional reporting by Ian Walker)
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